In day trading, your sterategy is very important in determining how much you make. In order to succeed in day trading, you need to be selective in choosing your strategy and than mastering it.
Trend trading is the most popular trding startegy that is used by the global hedgge funds and other suuccessful traders. Always remember the saying, " Trend is your friend." Big proofit potential lies in trades that capture big market moves. But most of the time the mrket is not trendinng. 70% of the market mooves occur only 20% of the time.
Most of the time, markets are rnging. Ranging mweans they are consolidating and movinng sideways. You identify a range by the rectangle patterrns that form in the pice action charts. However, raneg trading is not as profitable as tred trading. But what to do when the markets are not trending. At those timres, you can only do range trading.One of the best trading straegy in range trading is scalping.
As a day trader, you don't want to lose sight of the overall market. So how do you go about determining when the market trendding. You need to use Multiple Timeframe Analysis. Looking for opportunities to buy in a uptrend or sell in a downtrend is much more profitable as compared to buying at the top and selling at the bottom as done in ragne trading. In multiple time frame analysis, you can use the daiy or weekly chgart to determine the oevrall trend in the market and then use a hourly or a 30 minute chart to narrow it down to determine the exact entry and exit points in the trade.
Another day trading strategy not known to many is, "Fasding The Doublle Zeros." Currenyc markets are primarily influenced by the bank ordr flows taking place behind the scenes. As an individual tradr, you may never beocme privy to the sell side bank order flows. But there are certain psychological double zero numbers that can trigger large order flows. Using this kbnowledge and plaacing traes in those price zones can be highly profitable.
Then you can base your strategy on the different trading sessions like the Asian Sessuion, the Europena Session and the US Session. These sessions take place at different timmes and have differnt characteristics. Theree is one trading strategy known as the oLndon Rush Hour Strategy.
You can also use a intraday breakout strategy or fading strategy. Whateever trading strategy, you select first pracitce it on your demo acccount thoroughly and try to masetr it.
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